TMI Blog2011 (7) TMI 1095X X X X Extracts X X X X X X X X Extracts X X X X ..... respect of revenues receivable from advertising agents contains two columns, namely, (i) gross amount, and (ii) net amount. The net amount is credited to the books of account. In other words, the advertising agents pay only the net amount to the assessee company and the difference is retained by them, which is termed as commission by them. Such commission normally works out to 15% of the gross amount. It was further found that on the commission so paid to the advertising agent, tax was not deducted at source. Therefore, it was required to show cause as to why it should not be treated as an assessee in default. It was submitted that the assessee is dealing with the advertising agents on principal to principal basis, therefore, the commission ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e advertising agent for services rendered by them, which are not professional services etc. Accordingly, the assessee was required to pay the amount of ₹ 99,89,077/-. Interest payable on this amount was worked out at ₹ 52,82,209/-. Thus, demand of ₹ 1,52,71,286/- was raised. 2. The ld. CIT(Appeals) mentioned in his order that the AO terms the amount as commission, while the company terms it as trade discount. Therefore, in the opinion of the AO, provisions of section 194H are applicable in respect of payments made to advertising agents. Since such payments have not been made, the assessee has been asked to make good the payment of tax u/s 201(1) of the Act. It has also been charged with interest u/s 201(1A). He allowed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the paper book from page nos. 47 to 53. The facts of this case are identical except for the fact that Living Media India Ltd. is advertising in print media while the assessee is advertising in the electronic media. A reference was made to the decision of the Tribunal in the case of All India Radio Commercial Broadcasting Service/Prasar Bharti Broadcasting Corporation of India, (2006) 8 SOT 513. The issue in that case was as to whether the assessee was paying commission to the advertising agency or not. Another issue was as to whether the advertising agency was rendering any services to Doordarshan Commercial Services. The issue of relationship between Doordarshan Commercial Services and advertising agency was also involved in that case. It ..... X X X X Extracts X X X X X X X X Extracts X X X X
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